January 23rd Mortgage Market Wrap-up 2

Mortgage backed securities (MBS) closed flat today at 102.66 after having spent most of the day in negative territory.  MBS bonds closed just 4 basis points below resistance offered by the 25 day moving average and above support at the 50 day moving average.  This represents the second close below the trend line which has stood unwavering since October.  There was a moderate selloff in Treasuires which usually trend in the same direction.  Contrary to popular opinion, it is MBS bonds, not Treasuries which determine mortgage pricing.